Forensic mental healthcare module. critical analysis Essay tittle-

Forensic mental healthcare module. critical analysis tittle- VIOLENCE RISK AMONG PEOPLE WITH SEVERE PERSONALITY DISORDER - Essay Example There have been violence risk assessment schemes devised to measure the risk based on common standards (Webster and Hucker, 2007, p.44). Before exploring such risk assessment tools, it is paramount to understand the causes and nature of personality disorder and also the existing psychological theories on the same. Biological aspects The earliest reported diagnostic tendency in history, linked with personality disorders was to find a connection of heredity and genetics with the said disorder. It was Patrick (qtd. in Forrest, 1994) who carried out the â€Å"first comprehensive genealogical investigations of psychopathy and heredity† (p.70). The findings of that study as well as other studies that followed have suggested â€Å"between 50 and 70 percent of psychopaths have ancestral disturbance† (Forrest, 1994, p.70). Studies that were conducted in 1980s and 1990s also have proved the same (Forrest, 1994, p.71). The studies which investigated the biological aspects of perso nality disorder included twin studies, family studies, adoption studies, and also â€Å"criminality, male homosexuality and alcoholism† studies (Russell and Hersov, 1983, p.25). But there also has existed a counter argument, which says that there is no connection between heredity and psychopathy (Cloninger, Reich and Guze, 1975). An aberration in the chromosomal pattern was identified in early research as one aspect of the biological side of a personality disorder (Forrest, 1994, p.72). A study conducted â€Å"among mentally subnormal male criminals† had found that their genetic structure has an â€Å"extra Y chromosome† (Forrest, 1994, p.72). This genetic pattern has been named as â€Å"XYY genotype† and the characteristics of the individual having this chromosomal pattern have been described as â€Å"extreme episodic violence or aggression, low intelligence, behavioral pathology, and gonadal abnormalities† (Forrest, 1994, p.72). But more recent r esearch has refuted this assumed violence risk associated with XYY chromosome (Forrest, 1994, p.72). Another approach has been to link personality disorders to â€Å"brain damage and neurologic pathology† (Forrest, 1994, p.72). This is to suggest that a personality disorder is the result of a neurological disorder (Forrest, 1994, p.72). Further explorations in this direction have concluded that the major cause of a personality disorder is the damage to hypothalamus and this in turn might be the result of â€Å"hereditary or genetic factors as well as intrauterine or post-birth head trauma† (forrest, 1994, p.72). Hare (1970) has made another interesting observation in which it is argued that a psychopath often has lesions inside the brain, which impair the psychopath’s skill to control behavior which may invite social disapproval. Psychological perspectives & theories From a psychological point of view, personality disorders can be defined as personality â€Å"s ystems that are poorly functioning and/or inefficiently adapting to the requirements of contemporary society† (Magnavita, 2004, p.3). Diagnostic and Statistical Manual of Mental Disorders (DSM- IV) has defined a personality disorder as â€Å"an enduring pattern of inner experience and behavior that deviates markedly from the expectations of the individual’s culture, is pervasive and inflexible, has an onset in adolescence or early adulthood, is stable over time, and leads to distress or impairment†

Well-Being In The UK Essay Example for Free

Well-Being In The UK Essay Racism is a socially constructed phenomenon, evident within mainstream societys individual and institutional value systems. The corrosive effects of racism seriously impinge upon the life chances and life expectancy of ethnic minorities, living within the United Kingdom. Within this essay I will attempt to highlight the social implications of racism, illustrating the relationship between racism, poverty and social exclusion. I will also consider recent government legislation and the contribution required from Social Services to combat the perpetuating effects of racism. Within todays society racial classification creates a dominant framework of superior and inferior beings, some still believe superiority of one race over another is a result of biological indifferences. According to De Gobineaue the white race possesses intelligence, morality and will power superior to those of the others [other races] (Giddens 1993:264). Alternatively, black races are considered to be, in educable, deviant and inferior to their white counterparts. These stereotypical viewpoints embody the essence of racism; Giddens (1993) defines racism as falsely attributing inherited characteristics of personality or behaviour to individuals of a particular appearance. The negative affects of racism profoundly impact upon institutions such as education, housing, employment and health to name but a few. Institutional racism is an accepted concept existing within both the public and private sectors. The Macpherson Report defines institutional racism as: . the collective failure of an organisation to provide an appropriate service to people because of their colour, culture or ethnic origin (Macpherson Report, 1999) The reality of such a damning statement confirms the disadvantage ethnic minorities encounter in their every day lives; furthermore the negative effects of racism correlate with statistics illustrating, ethnic minorities experiences with poor standards of housing and lower levels of income. Within the United Kingdom, ethnic minorities represent approximately 5. 5 per cent of the population (Commission for Racial Equality 1999); most minority ethnic groups live in socially and economically deprived areas, experiencing limited access to quality services. Poverty is a fundamental disadvantage afflicting many ethnic minority groups; amongst the diverse population contained within the label ethnic minority groups Bangladeshi and Pakistani families are by far the poorest groups, research carried out by (Foundations 2000) reveals that 60 per cent of Pakistani and Bangladeshi communities live in poor conditions. The effects of poverty significantly contribute towards lower social status, poorer life chances and a feeling of powerlessness; the consequences of poverty not only deprive individuals of material necessities but when combined with racism, exacerbate social inequalities that further compound the disadvantage that already exists. Residing within socially and economically deprived areas, places limitations on the quality and standard of education ethnic minorities receive (Giddens 1993). Many inner city schools fail to recognise, the intrinsic needs of children from different races. Furthermore, under-representation of ethnic minority teachers and a curriculum that emphasises white dominance contribute towards accusations that the educational system is institutionally racist. Maxie Hayles, chair of the Birmingham Racial Attacks Monitoring Unit quotes;- Black children are often labelled by teachers as disruptive and less intelligent than white pupils; creating a self fulfilling prophecy. Black youths need something: they feel debased; they need something to identify with. (Hinsliff and Bright 2000)

The Islamic communication

The Islamic communication Overview of the Theory: The theory basically points out the defects that are present in the existing theories of media and communications, they being predominantly western and secular in their approach have certain inconsistencies when applied in the Islamic world. It talks about the establishment of a professional association of Muslim journalists to give the Islamic world a voice that they consider to be appropriate in the media. Fundamentally the Islamic view of the world is based on five principles of (1) tawhid, (2) amrbi al-maruf wa nahyan al munkar, (3) ummah, (4) taqwa, and (5) amanat which are also explained in the theory. These five principles are not only the basic governing and guiding factor based on faith for the common Muslims but also for an Islamic state and hence will also be the elements that if an establishment of Muslims journalists is formed will use. The theory also then explains how the Muslim state or the Ummah is different from the present understanding of a nation state or politic al entity in the western world. From an Islamic perspective, therefore, this theory concludes that linguistic and political vocabularies and concepts, now at the centre of global politics, both celebrate the arrival of a new communication age and hold the key to ultimate information control (Mowlana, 2007). The Principles of an Islamic State and Media Theory Tawhid (Faith) Tawhid or faith as understood in the literal sense of the word implies the same thing in Islam. Even though the term has a deeper meaning than the regular interpretation. Tawhid in Islam means the acceptance of the Oneness of God. This implies in the religious context that there is no other power capable of doing anything without the will of God and hence it mandates the total submission of will to God. Since Islam is not just a religion, but an entire way of life. What this basically means is that, the spiritual aspects of the religion are not separate from the social, political, economic as well as personal aspects of a persons life. Hence, while in some other religions, which are classified as spiritual and a separation between the religious aspect of life and all the others can be established, in Islam it cannot be so. A Muslim is not considered a Muslim if he just following the spiritual aspect and not the social, economic and political aspects of the religion. It stands for the necessity of exclusive servitude to God, and it negates any communication and messages, intellectual, cultural, economic, or political, that subjugates humankind to creatures. The principle of Tawhid also negates any right of sovereignty and guardianship of anyone over human society except God. Society can be expected to be free from all deviations and excesses only when the affairs of society are delegated by a Power Transcendental to an individual or a council of rulers, with a power commensurate with responsibilities within the Islamic legal framework. Thus, all man-made laws and ethical codes that arrogate judgment to them, or to any authority or institution other than in obedience or enforcement of Allahs Own Judgment, are void. Therefore, all man-made laws, communication contents, mass media, and public forums that attempt to put restraints upon Allahs sovereignty must be void. Under the principle of Tawhid, another fundamental ethical consideration in tabligh becomes clear: the destruction of thought structures based on dualism, racialism, tribalism, and familial superiority. The function of communication order in Islamic society, according to the principle, is to break idols, to break the dependence on the outsiders, and to set the ummah or community in motion toward the future. Thus, one of the important functions of tabligh is to destroy myths. In our contemporary world, these myths may include power, progress, and modernization. Personalities as they represent these must not be super-humanized and super-defined. One of this dualism, according to this principle, is the secular notion of the separation of religion and politics. (Mowlana, 2007). Amr bi al-maruf wa nahyan al munkar A second principle guiding the ethical boundaries of tabligh in Islam is the doctrine of amr bi al-maruf wa nahyan al munkar or commanding to the right and prohibiting from the wrong. Implicit and explicit in this principle is the notion of individual and group responsibility for preparing the succeeding generation to accept the Islamic precepts and make use of them. Muslims have the responsibility of guiding one another, and each generation has the responsibility of guiding the next. The Quranic verse explains this: Call people to the path of your Lord with wisdom and mild exhortation. Reason with them in the most courteous manner. Your Lord best knows those who stray from His path and best knows those who are rightly guided (16:125). These points out the responsibilities of Muslims in guiding each other, especially those individuals and institutions that are charged with the responsibilities of leadership and propagation of Islamic ideals. This includes all the institutions of soci al communication such as the press, radio, television, and cinema, as well as the individual citizens of each community. Thus, a special concept of social responsibility theory is designed around the ethical doctrine of commanding to the right and prohibiting from the wrong. This concept has taken on an extra dimension of its own in the Islamic communities and societies through history since Islam as an all-inclusive systematic religion is an interrelated set of ideas and realities covering the entire area of human notion and action, beliefs and practices, thought, word, and deed. This is particularly important in light of the fact that Islam is not only a set of theological propositions, as are many other religions, but is also a set of comprehensive legal frameworks that govern every action of the individual in society and in the world at large (Mowlana, 2007). Ummah (Community) A third fundamental concept in determining the nature and boundaries of tabligh and that of social ethics, particularly as it might relate to the political life of the individual and Islamic society, is ummah or community. The concept of ummah transcends national borders and political boundaries. Islamic community transcends the notion of the modern nation-state system: an Islamic community is a religio-economic concept and is only present when it is nourished and governed by Islam. The notion of community in Islam makes no sharp distinction between public and private; therefore, what is required of the community at large is likewise required of every individual member. Accordingly, the ummah must be exemplary, setting the highest standards of performance and the reference point for others. In the Islamic ummah, the sovereignty of the state belongs to God, and not to the ruler nor even to the people themselves. The ruler or leaders are only acting executives chosen by the people to serve them according to the Law of Islam and the concept of Tawhid. Under the ummah, Islam has a new concept of community. One of the most important aspects of ummah is that Islam does not differentiate between the individuals as members of its community. Race, ethnicity, tribalism, nationalism, have no place to distinguish one member of the community from the rest. Nationalities, cultural differences, and geographical factors are recognized, but domination based on nationality is rejected. It is the individual and its relations to the community that is valued; however, this relationship alone is not the sole purpose in itself, both the individual and society must make their relationship clear to God: Are the individuals in society against God or under God? Taqwa (piety) A fourth principle outlined here to explain the ethical framework of journalism in Islamic societies is the concept of Taqwa or, roughly translated, piety. In Islamic societies, Taqwa is commonly used in reference to individual fear of God and the ability to guard oneself against the unethical forces which might surrender the environment; however, the concept of Taqwa goes beyond this common notion of piety. It is the individual, spiritual, moral, ethical, and psychological capacity to raise oneself to that higher level, which makes a person almost immune from the excessive material desires of the world, elevating the individual to a higher level of prophetic self-consciousness. The assumption is that human beings possess in their nature a set of divine elements which are other than the material constituents that exist in animals, plants, and inanimate objects. Human beings are endowed with innate greatness and dignity. Recognizing that freedom of choice is a condition for the fulfilment of obligation, the person is held responsible to perform his or her obligations within the Islamic framework of ethics. In short, it is recognized that human beings perform some of their actions only under the influence of a series of ethical emotions rather than with an intention of gaining a benefit or of repelling harm. Thus, as a virtue and as an important element in the ethical framework of Islamic communication both on the individual and community levels, Taqwa should be the underpinning ingredient in almost every action of a Muslim. Amanat (Responsibility) The fifth and final principle outlined in this article is the concept of Amanat. The term Amanat signifies great responsibility which the Almighty God has imposed on the human being for his or her deeds in this world. The most relevant view of this concept as it may apply to the conduct of the press and the media is that Amanat refers to Divine Vicegerency for which human beings alone are fit and none else can share this honour with him. The Holy Quran says: Surely, we offered the Amanat into the heavens and the earth and the hills, but they refused to hear it and were afraid of it, and man took it up. Verily, he (human beings) as unjust and ignorant (xxxiii: 72). Thus, human beings fitness for Divine Vicegerange is lower, conditioned by the fact that he or she must practice the lofty code morality which brings him or her to the Supreme Being. Off all the created beings, human beings are certainly the best and noblest (Ashraf-ul-makhlughat). Here, it may be noted that rights and obligations are interdependent. Serving the public interest, therefore, becomes one of the principal ethical duties of the media. Amanat means obligatory duties (faraiz). One aspect of Amanat is that is can only be given to one who has the capability and power to shoulder the burden of its responsibilities and fulfil the commandments of Allah. Thus, in Islam, real progress of moral and not just material, for the latter refers to the transitory things of life. The liberty in Islam has quite a different meaning from that understood in the West. It is neither a prerogative nor an absolute right of the individual. Hamid Mowlanas Take on Communication A number of studies on international communication over the last several decades reveal two essential characteristics. One is the ethnocentric orientation of mass communication systems of the highly developed and industrialized nations, and the second is the asymmetric circulation of information in the world. These two characteristics dominate the world mass media system and indeed are responsible for uneven treatment of events, imbalances in news and information, and also the unequal distribution of power in the world system. It is precisely here that a need for professional code of ethics among Muslim journalists around the world seems imperative, and their creation of a network of professional world associations both timely and inevitable. From the Islamic Revolution in Iran to the occupation of Afghanistan by the former Soviet Union, from the Persian Gulf War to the American invasion of Iraq, the last two decades have witnessed profound and worldwide revolutionary movements of an Islamic nature as well as systematic and continuous conflicts which have embraced Muslim lands. The developments in the Islamic world not only have been reported during this period with a good deal of bias, distortion, and ethnocentrism by non-Muslim media but also the great portion of what has been reported has been provided mainly by the Western media and journalists. Research shows that 99 per cent of world events do not come to the attention of readers simply because they are eliminated and considered as unimportant or irrelevant by the media. The Islamic world, in particular, has been on the receiving end of a good share of this modus operandi. A cursory look at the list of existing media and journalist associations around the world quickly shows how the media are organized and mobilized on the basis of nationality, regionalism, ethnicity, and even religious premises and are among the most active nongovernmental organizations around the world. Yet, remarkably, today, there are no professional associations of Islamic journalists which can set professional and ethical criteria for news reporting, protect the rights of individual Muslim journalists, and promote education and training of young men and women who represent a major source of human resources for Islamic culture and civilization. Why should there be an organization of Muslim journalists? Islam is not only a religion but also a total way of life for millions of people around the world. Unlike other major cultural systems, Islam transcends geographical as well as racial and ethnic boundaries and strives for universality of human kind. In short, the socio-cultural elements inherent in and among the Islamic community, ummah, provide a common ground and outline a necessity for the type of news reporting that is vital to understanding events in the world community. Such a network of Muslim journalist and media associations and professional organizations also can play an important role as vanguards and promoters of professional aims within the existing systems of international organizations. A network of professional associations, thus, not only can enhance the exchange of information among and between various geographical areas known as the Islamic world but also can stimulate the ongoing mobilization of journalists and their common interests. Principles of the Association It must be recalled that news values in the Islamic world differ considerably from the general news values in the non-Islamic world and, more specifically, the West. For example, take the concept of so-called hard news common in the Western media with its five Ws syndrome of what, when, where, why, and who which is promoted as universal. The real problem is that the recipient of such five Ws news never is allowed to conceive of news as a whole but only in fragments because the structure of the whole is at odds with what is considered hard facts. The priorities given to news values in the West, such as human interests, proximity, novelty, consequence, and prominence, are totally different from those valued in Islamic contexts. For example, the notion of proximity in the Western media primarily is a geographical as well as spatial concept. To apply this concept, in its orthodox sense, to the Islamic world would eliminate news coming from distant places such as Indonesia, China, Africa, or Latin America when the media and its audiences are located somewhere in the United States or the Middle East. Proximity in an Islamic context is neither geographical nor spatial but rather cultural-that is to say, events of the Islamic community of ummah are and must be relevant to the entire Muslim world regardless of nationalities and countries. The factors of human interest or prominence are by themselves not adequate justification for reporting of news in the Islamic context. News and information for the ummah are social commodities and not cultural industries. Analysis of the Propositions Even though the idea of having a unified singular association of Muslim journalists as proposed by Hamid Mowlana does seem appealing, there are certain points which if not taken into context can result in more chaos and instability than the pre-existing conditions. Mowlana emphasis the establishment of the association on the basis of Islam however, he fails to mention which form of Islam that is being followed currently will be the guiding factor for this association. Since it is pretty clear that there are more than 70 different sects of Islam currently being followed in the world and mostly the political scenarios are shaped by them, it will be difficult to come to a consensus. Since this is a matter of religion, it will be going against Ones faith if any of the principles are compromised upon. The predominant clash can be seen between the Shia and the Sunni. And we can see the problems that are happening on the political scenario in Iraq due to this very difference. Also, then there are variation of within the Sunnis and the Shias. This problem as he proposes can be taken care of by establishing it on the basis of the Quran and the Sunnah. That however, will also leave us with at least five different interpretations of Islam. Which can be se en in his own works Although the official religion of Iran is Islam and the Twelver Jfari school of Shia thought, other Islamic schools of thought, including the Hanafi, Shafii, Maliki, and Yazdi schools, are to be accorded full respect, and their followers are free to act in accordance with their own jurisprudence in performing their religious devotions. (Mowlana, 1996: 175) Another important issue that Mowlana has not tackled properly in his theory is the various cultural differences that are there due to the geo-political scattering of the Muslims. Since by its very nature the association will be established to cater the need of the Muslim population throughout the globe, it is necessary to take into account the differences that are there in the Muslim world. Perhaps the closest we have to anything called a Muslim news network is Al Jazira, and I say close as it is also primarily not a Muslim news organization, we can see that it also again focuses on the issues that are there at the core of the Arab population and hence is not directly catering to the needs of the Muslims in the world. How he proposes to solve such a problem is not clear in any of his works. With the other parts of the theory of Mowlana that there should be an Islamic view of communication is what I agree with. Since, as explained above the Islamic community is an Ummah and unlike other religions Islam is a complete way of life. Conclusions With a few reservations that I have to the theory of Mowlana and those are also with the establishement of the association of the journalists that he proposes. I also feel that perhaps taking the Islamic point of view on communication and especially the differentiation between Tabligh and Propoganda is necessary for the world that we are living in. We are currently facing a crisis as to where Islam is being targeted as a religion that is one of the primary reasons for the absence of peace in the world and hence it is necessary that we show the Muslim perspective on the various events occurring in the world. References Khiabany, Gholam (2003) De-westernizing Media Theory, or Reverse Orientalism: `Islamic Communication as Theorized by Hamid Mowlana, Media Culture Society 2003; 25; 415 Mowlana, Hamid (1979) Technology versus Tradition: Communication in the Iranian Revolution, Journal of Communication 29(3): 107-12. Mowlana, Hamid (1989) The Islamization of Iranian Television, Intermedia 7(5): 35-9. Mowlana, Hamid (1993) The New Global Order and Cultural Ecology, Media, Culture Society 15(1): 9-27. Mowlana, Hamid (1996) Global Communication in Transition: The end of Diversity? Thousand Oaks, CA: Sage. Mowlana, Hamid (2007) Theoretical Perspectives on Islam and Communication, China Media Research, 3(4), 2007 Mowlana, Hamid (1997) Islamicising the Media in a Global Era: The State- Community Perspective in Iranian Broadcasting, in Kevin Robins (ed.) Programming for People: From Cultural Rights to Cultural Responsibilities. United Nations Television Forum, New York, 19-21 November. Report presented by RAI-Radiotelevisione Italiana. Mowlana, Hamid and Laurie Wilson (1990) The Passing of Modernity. London: Longman.

Classical Management Theory Essay -- Classical Management Theories Ess

Classical Management Theory Early Management Theories Early Theories of Organizations emerged mainly for military and Catholic Church. The metaphor of the machine was dominant, where organizations are viewed as machines. Therefore, the organizational application was, since workers behave predictably (as machines do rarely deviate from the norm), management knows what to expect, and workers operating outside expectations are replaced. Classical Management Theories There are three well-established theories of classical management: Taylor?s Theory of Scientific Management, Fayol?s Administrative Theory, Weber?s Theory of Bureaucracy. Although these schools, or theories, developed historical sequence, later ideas have not replaced earlier ones. Instead, each new school has tended to complement or coexist with previous ones. Taylor?s Theory of Scientific Management, U.S.A Frederick Taylor (1856-1915) ?The Father of Scientific Management?. Scientific Management theory arose from the need to increase productivity in the U.S.A. especially, where skilled labor was in short supply at the beginning of the twentieth century. The only way to expand productivity was to raise the efficiency of workers. Taylor devised four principles for scientific management theory, which were: 1. The development of a true science of management, 2. The scientific selection and training of workers, 3. Proper remuneration for fast and high-quality work 4. Equal division of work and responsibility between worker and manager Limitations of The Theory of Scientific Management: Although it maximized efficiency and productivity but its main limitation was ignoring human aspects of employment. This is manifested in the following: ? Some workers and unions opposed this theory because they feared that working harder or faster would exhaust whatever work was available, causing layoffs. ? Objection to the "speed up" conditions that placed undue pressures on employees to perform at faster levels, some managers exploited both workers and customers. ? Reducing worker?s role to a rigid adherence to compulsory methods and procedures. ? The increased fragmentation of work due to its emphasis on divisional labor . ? Economically based approach to the motivation of employees . ? It put planning and control of workplace activities only in the hands of managers. ... ...Late 1980's: renewed interest in organizational climate and groups Late 1980's: rise of participatory management techniques known by such terms as Total Quality Management (TQM), Continuous Quality Improvement (CQI). 1986: first ruling by U.S. Supreme Court on subject of sexual harassment Late 1980's: work stress received increasing attention in I/O research, theory, and practice Balancing work and family lives received increasing attention. References: - Organisation and Management of Health Care, April 2002, Version 2.0 , Main Contributor: Katie Enock, Public Health Specialist, Harrow Primary Care Trust www.healthknowledge.org.uk - Henri Rayol Industrial and General Administration, J.A.Caubrough, trans.(Geneva International Management Institute, 1930) - http://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylor/taylor.html - http://www.survey-software-solutions.com/walonick/organizational-theory.htm - http://www.glass-time.com/gainsharing/Motivation.html - http://www.mtsu.edu/~pmccarth/io_hist.htm - http://home.eclions.net/mbobic/Version17.htm - http://www.lib.uwo.ca/business/fayol.html - http://www2.pfeiffer.edu/~lridener/DSS/Weber/WEBRPER.HTML Classical Management Theory Essay -- Classical Management Theories Ess Classical Management Theory Early Management Theories Early Theories of Organizations emerged mainly for military and Catholic Church. The metaphor of the machine was dominant, where organizations are viewed as machines. Therefore, the organizational application was, since workers behave predictably (as machines do rarely deviate from the norm), management knows what to expect, and workers operating outside expectations are replaced. Classical Management Theories There are three well-established theories of classical management: Taylor?s Theory of Scientific Management, Fayol?s Administrative Theory, Weber?s Theory of Bureaucracy. Although these schools, or theories, developed historical sequence, later ideas have not replaced earlier ones. Instead, each new school has tended to complement or coexist with previous ones. Taylor?s Theory of Scientific Management, U.S.A Frederick Taylor (1856-1915) ?The Father of Scientific Management?. Scientific Management theory arose from the need to increase productivity in the U.S.A. especially, where skilled labor was in short supply at the beginning of the twentieth century. The only way to expand productivity was to raise the efficiency of workers. Taylor devised four principles for scientific management theory, which were: 1. The development of a true science of management, 2. The scientific selection and training of workers, 3. Proper remuneration for fast and high-quality work 4. Equal division of work and responsibility between worker and manager Limitations of The Theory of Scientific Management: Although it maximized efficiency and productivity but its main limitation was ignoring human aspects of employment. This is manifested in the following: ? Some workers and unions opposed this theory because they feared that working harder or faster would exhaust whatever work was available, causing layoffs. ? Objection to the "speed up" conditions that placed undue pressures on employees to perform at faster levels, some managers exploited both workers and customers. ? Reducing worker?s role to a rigid adherence to compulsory methods and procedures. ? The increased fragmentation of work due to its emphasis on divisional labor . ? Economically based approach to the motivation of employees . ? It put planning and control of workplace activities only in the hands of managers. ... ...Late 1980's: renewed interest in organizational climate and groups Late 1980's: rise of participatory management techniques known by such terms as Total Quality Management (TQM), Continuous Quality Improvement (CQI). 1986: first ruling by U.S. Supreme Court on subject of sexual harassment Late 1980's: work stress received increasing attention in I/O research, theory, and practice Balancing work and family lives received increasing attention. References: - Organisation and Management of Health Care, April 2002, Version 2.0 , Main Contributor: Katie Enock, Public Health Specialist, Harrow Primary Care Trust www.healthknowledge.org.uk - Henri Rayol Industrial and General Administration, J.A.Caubrough, trans.(Geneva International Management Institute, 1930) - http://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylor/taylor.html - http://www.survey-software-solutions.com/walonick/organizational-theory.htm - http://www.glass-time.com/gainsharing/Motivation.html - http://www.mtsu.edu/~pmccarth/io_hist.htm - http://home.eclions.net/mbobic/Version17.htm - http://www.lib.uwo.ca/business/fayol.html - http://www2.pfeiffer.edu/~lridener/DSS/Weber/WEBRPER.HTML

Citibank Performance Evaluation Case Study

Annual Report Consolidated and Statutory Financial Statements at December 31, 2006 101st fiscal year Fiat S. p. A. Financial Statements at December 31, 2006 234 Financial Review of Fiat S. p. A. 238 Income Statement 239 Balance Sheet 240 Statement of Cash Flows 241 Statement of Changes in Stockholders’ Equity I am enough of an artist to draw freely upon my imagination. Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world. Albert Einstein 242 Income Statement pursuant to Consob Resolution No. 5519 of July 27, 2006 243 Balance Sheet pursuant to Consob Resolution No. 15519 of July 27, 2006 244 Notes to the Financial Statements 301 Appendix – Transition of the Parent Company Fiat S. p. A. to International Financial Reporting Standards (IFRS) Financial Review of Fiat S. p. A. The financial statements illustrated and commented on in the following pages have been prepared on the basis of the company’s statutory financial st atements at December 31, 2006 to which reference should be made. In compliance with European Regulation no. 606 of July 19, 2002, starting from 2005 the Fiat Group has adopted International Financial Reporting Standards (â€Å"IFRS†) issued by the International Accounting Standards Board (â€Å"IASB†) in the preparation of its consolidated financial statements. On the basis of national laws implementing that Regulation, starting from 2006 the Parent Company Fiat S. p. A. is presenting its financial statements in accordance with IFRS, which are reported together with comparative figures for the previous year. Operating PerformanceSpecifically: Personnel and operating costs, totalling 199 million euros, comprise 58 million euros in personnel costs (60 million euros in 2005), and 141 million euros in other operating costs (121 million euros in 2005), which include the costs for services, amortisation and depreciation and other operating costs. These costs increased as a w hole by 18 million euros from 2005 as a result of non-recurring charges. In 2006, the average headcount was 140 employees, compared with an average of 133 employees in 2005.The company’s Income Statement is summarised in the following table: Investment income – Dividends – (Impairment losses) reversals – Gains (losses) on disposals Personnel and operating costs net of other revenues Income (expenses) from significant non-recurring transactions Financial income (expenses) Financial income from significant non-recurring transactions Income taxes Net income Personnel and operating costs net of other revenues total 120 million euros, compared with 109 million euros in 2005. IThe Parent Company earned net income of 2,343 million euros in 2006, 1,226 million euros higher than in 2005 when the result included net non-recurring income of 1,714 million euros. (in millions of euros) Business Solutions S. p. A. (for a total of 147 million euros), net of the revaluat ion of the investments held in Fiat Netherlands Holding N. V. (376 million euros due to the positive performance of the CNH and Iveco subsidiaries), Magneti Marelli Holding S. p. A. (144 million euros) and minor companies. 2006 2005 2,461 62 2,099 – (120) – (24) – 26 2,343 (424) 8 (431) (1) (109) 1,133 (62) 858 (279) 1,117 Investment income totals 2,461 million euros compared with investment expense of 424 million euros in 2005 and consists of dividends received during the period and reversal of impairment losses (net of write-downs) of investments. Specifically: Dividends total 362 million euros and were received from the subsidiaries IHF – Internazionale Holding Fiat S. A. (259 million euros), Fiat Finance S. p. A. (75 million euros) and other companies.In 2005 dividends received from investments totalled 8 million euros. I Impairment loss reversals (net of write-downs) of 2,099 million euros resulted from the revaluation of the investments in the subsi diaries Fiat Partecipazioni S. p. A. (1,388 million euros mainly connected to Fiat Auto), Iveco S. p. A. (946 million euros) and Fiat Netherlands Holding N. V. (96 million euros connected to CNH), all written-down in previous years, net of the impairment loss recognised on the investment in Comau S. p. A. (330 million euros).I Other revenues , totalling 79 million euros (72 million euros in 2005), principally refer to the change in contract work in progress (agreements between Fiat S. p. A. and Treno Alta Velocita – T. A. V. S. p. A. ), which is measured by applying the percentage of completion to the total contractual value of the work, to royalties for the use of the Fiat trademark, calculated as a percentage of the revenues generated by the Group companies that use it, and the services of executives at the principal companies of the Group.The increase from 2005 is mainly attributable to higher charges for the use of the trademark. No Income (expenses) from significant non- recurring transactions is reported in 2006. In 2005 a gain of 1,133 million euros (net of related costs) was recorded on the transaction regarding the termination of the Master Agreement with General Motors. In 2006, there were net financial expenses of 24 million euros, arising from the interest charges on the Company’s debt, which was partially offset by the gain resulting from derivative financial instruments.In 2005 there were net expenses of 62 million euros mainly arising from the interest expenses connected with the Mandatory Convertible Facility. No Financial income from significant non-recurring transactions is reported in 2006. In 2005 this item included income of 858 million euros resulting from the capital increase of September 20, 2005 with the simultaneous conversion of the Mandatory Convertible Facility. The income represents the difference between the subscription price of the new shares issued and the stock market price of the shares at the subscription date, net of issuance costs.I In 2005, net impairment losses recognised on investments totalled 431 million euros, mainly due to losses from the investments in Fiat Partecipazioni S. p. A. (811 million euros connected mainly to the losses of Fiat Auto), Teksid S. p. A. , Comau S. p. A. and 234 Financial Review of Fiat S. p. A. The income tax revenue of 26 million euros is the net result of the remuneration for the tax loss brought into the national tax consolidation by Fiat S. p. A. in 2006 to offset the income reported by the Group’s Italian companies, and the IRAP charge recognised for the period.Income tax expenses of 279 million euros in 2005 consisted of the reversal of deferred tax assets of 277 million euros, recognised in the financial statements at December 31, 2004 in relation to the settlement subsequently made with General Motors for the termination of the Master Agreement. Financial Review of Fiat S. p. A. 235 Balance Sheet Highlights of the Parent Company’s Ba lance Sheet are illustrated in the following table: (in millions of euros) Non-current assets – of which: Investments Working capital Total net invested capital Stockholders’ equityNet debt (liquid funds) At December 31, 2006 At December 31, 2005 14,559 14,500 167 14,726 10,374 4,352 5,168 5,118 303 5,471 7,985 (2,514) Current financial payables consist of the overdraft with the subsidiary Fiat Finance S. p. A. and short-term financing received from that company, as well as payables to factoring companies for advances on receivables. Non-current financial payables consist almost entirely of loans repayable in the 2010-2013 period granted by the subsidiary Fiat Finance S. p. A. at market rates as part of the recapitalisation of subsidiaries discussed above.At December 31, 2005 financial receivables related to short-term financing of 2,700 million euros granted to the subsidiary Fiat Finance S. p. A. and due in 2006, and to cash deposited on the current account held with that company. For a more complete analysis of cash flows, reference should be made to the Statement of Cash Flows set out on the following pages as part of the statutory financial statements of the Parent Company Fiat S. p. A. Reconciliation between the Parent Company’s equity and its result for the year with those of the GroupNon-current assets mainly include investments in the relevant subsidiaries of the Group. The net increase of 9,382 million euros in investments as compared to December 31, 2005 stems from net write-ups arising from the reversal of previously recognised impairment losses and recapitalisations of 6,361 million euros carried out during the year in the subsidiaries Fiat Partecipazioni S. p. A. (6,000 million euros), Fiat Netherlands Holding N. V. (121 million euros) and Comau S. p. A. (240 million euros), in order to re-balance the equity structure inside the Group and cover losses, as well as the re-purchase from Mediobanca S. . A. of 28. 6% of the shares of Ferrari S. p. A. (893 million euros) upon exercise of the call option provided for in the 2002 agreements, which brought the investment to an 85% stake. Working capital, which totalled 167 million euros, consists of inventories net of advances received, trade, tax and employee receivables/payables, other receivables/payables and provisions. The 136 million euro decrease over December 31, 2005 is mainly attributable to the refund of VAT receivables by the Tax Authorities.Stockholders’ equity at December 31, 2006 totalled 10,374 million euros, reflecting an increase of 2,389 million euros as compared to December 31, 2005 due to the positive result of the year (2,343 million euros) and other minor changes (including 28 million euros resulting from marking to market the fair value carrying amount of the Mediobanca shareholding). Pursuant to the Consob Communication of July 28, 2006, set out below is a reconciliation between the Parent Company’s equity at December 31, 2 006 and its result for the year then ended with those of the Group (Group interest). (in millions of euros) Stockholders’ equity atDecember 31, 2006 Financial Statements of Fiat S. p. A. Elimination of the carrying amounts of consolidated investments and the respective dividends from the financial statements of Fiat S. p. A. Elimination of the reversal of impairment losses (net of recognised impairment losses) of consolidated investments Equity and results of consolidated subsidiaries Consolidation adjustments: Elimination of intercompany profits and losses on the sale of investments Elimination of intercompany profits and losses in inventories and fixed assets and other adjustments Consolidated financial statements (Group interest) 2006 Net result 10,374 2,343 14,211) – 13,404 (346) (2,099) 1,229 – (205) 9,362 (41) (21) 1,065 For a more complete analysis of the changes in stockholders’ equity, reference should be made to the relevant table set out in the following pages as part of the statutory financial statements of the Parent Company Fiat S. p. A. Net debt totalled 4,352 million euros at December 31, 2006 compared with net liquid funds of 2,514 million euros at December 31, 2005. The use of the liquid funds balance at the beginning of the year and the subsequent accumulation of debt are the consequence of the previously mentioned recapitalisations of subsidiaries and purchase of Ferrari S. . A. shares. A breakdown of net debt is illustrated in the following table: (in millions of euros) Financial receivables, cash and cash equivalents Current financial payables Non-current financial payables Net debt (net liquid funds) 236 Financial Review of Fiat S. p. A. At December 31, 2006 At December 31, 2005 (85) 1,627 2,810 4,352 (3,076) 557 5 (2,514) Financial Review of Fiat S. p. A. 237 Income Statement (in euros) Dividends and other income from investments (Impairment losses) reversal of impairment losses of investments Gains (losses) on the disposal of investments Other operating income Personnel costsOther operating costs Income (expenses) from significant non-recurring transactions Financial income (expenses) Financial income from significant non-recurring transactions Result before taxes Income taxes Result from continuing operations Result from discontinued operations Net result Balance Sheet (*) Note 2006 2005 (1) 362,418,522 2,099,350,000 425,380 79,238,202 (57,899,516) (141,006,254) – (24,846,809) – 2,317,679,525 (25,695,447) 2,343,374,972 – 2,343,374,972 7,713,904 (430,788,686) (1,300,134) 72,853,610 (60,027,274) (121,360,013) 1,133,110,377 (61,685,499) 857,636,269 1,396,152,554 278,827,554 ,117,325,000 – 1,117,325,000 (2) (3) (4) (5) (6) (7) (8) (9) (10) (*) Pursuant to Consob resolution no. 15519 of July 27, 2006 effects of transactions with related parties on the Income Statement of Fiat S. p. A. are included in the specific income statement schedule reported in the followi ng pages and also provided in the comments of the single items and in Note 30. (*) (in euros) ASSETS Non-current assets Intangible assets Property, plant and equipment Investments Other financial assets Other non-current assets Deferred tax assets Total Non-current assets Current assets Inventories Trade receivablesCurrent financial receivables Other current receivables Cash and cash equivalents Total Current assets Assets held for sale TOTAL ASSETS STOCKHOLDERS’ EQUITY AND LIABILITIES Stockholders’ equity Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result Total Stockholders’ equity Non-current liabilities Provisions for employee benefits and other non-current provisions Non-current financial payablesOther non-current liabilities Deferred tax liabili ties Total Non-current liabilities Current liabilities Provisions for employee benefits and other current provisions Trade payables Current financial payables Other payables Total Current liabilities Liabilities held for sale TOTAL STOCKHOLDERS’ EQUITY AND LIABILITIES Note At December 31, 2006 At December 31, 2005 (11) 771,530 37,252,689 14,499,594,748 20,134,319 1,573,473 – 14,559,326,759 675,599 39,658,553 5,117,531,801 5,335,175 4,501,747 – 5,167,702,875 – 154,692,452 84,173,202 626,428,489 608,105 865,902,248 – 15,425,229,007 – 215,652,499 3,075,893,885 799,919,053 95,235 4,091,960,672 – 9,259,663,547 6,377,257,130 1,540,856,410 22,590,857 446,561,763 24,138,811 6,134,851 (553,411,863) (24,138,811) 162,764,566 27,399,708 2,343,374,972 10,373,528,394 6,377,257,130 681,856,410 22,590,857 446,561,763 27,709,936 334,633 (811,736,863) (27,709,936) 134,267,390 16,102,522 1,117,325,000 7,984,558,842 18,104,487 2,810,029,000 20,000,576 3, 438,000 2,851,572,063 29,170,653 5,262,000 16,861,109 – 51,293,762 26,790,951 184,660,883 1,627,429,902 361,246,814 2,200,128,550 – 15,425,229,007 30,990,501 385,182,033 557,382,830 250,255,579 1,223,810,943 – 9,259,663,547 (12) (13) (14) (15) 10) (27) (16) (17) (18) (19) (20) (21) (22) (23) (10) (24) (25) (26) (27) (*) Pursuant to Consob resolution no. 15519 of July 27, 2006 effects of transactions with related parties on the Balance Sheet of Fiat S. p. A. are included in the specific balance sheet schedule reported in the following pages and also provided in the comments of the single items and in Note 30. 238 Fiat S. p. A. Financial Statements at December 31, 2006 Fiat S. p. A. Financial Statements at December 31, 2006 239 Statement of Changes in Stockholders’ Equity Statement of Cash Flows (in thousands of euros) 2006 2005 (in thousands of euros)A) Cash and cash equivalents at beginning of period B) Cash flows from (used in) operating activities durin g the period: Net result for the period Amortisation and depreciation Non-cash gain from extinguishment of the Mandatory Convertible Facility Non-cash stock option costs (Impairment losses) reversals of impairment losses of investments Capital losses/gains on the disposal of investments Change in provisions for employee benefits and other provisions Change in deferred taxes Change in working capital Total C) Cash flows from (used in) investment activities: Investments: – Recapitalisations of subsidiaries – AcquisitionsOther investments (tangible and intangible assets and other financial assets) Proceeds from the sale of: – Investments – Other non-current assets (tangible, intangible and other) Total D) Cash flows from (used in) financing activities: Change in current financial receivables Change in non-current financial payables Change in current financial payables Capital increase Sale of treasury stock Dividend distribution Total E) Total change in cash and cash equivalents F) Cash and cash equivalents at end of period 495 325 2,343,375 2,882 – 11,297 (2,099,350) (329) 7,990 3,438 151,872 421,175 1,117,325 2,918 (859,000) 10,041 430,789 (93) ,100 277,000 (76,028) 905,052 Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result for the period Total Stockholders’ equity At December 31, 2004 Capital increase for conversion of the Mandatory Convertible Facility 4,918,113 – 22,591 446,562 26,413 1,632 (813,435) (26,413) 74,397 6,062 2,141,000 Valuation of stock option plans and other changes Net result for the period At December 31, 2005 10,442 1,117,325 1,117,325 ,377,257 681,856 22,591 446,562 27,710 335 (811,737) (27,710) 134,267 16,103 1,117,325 7,984,559 Valuation of stock option plans and other changes Net result for the period At December 31, 2006 1,459,144 681,856 4,655,922 Fair value adjustments recognised directly in equity 1,297 (1,297) 1,698 (1,297) 59,870 10,041 59,870 (*) (*) Treasury stock at December 31, 2005 consists of 4,331,708 ordinary shares for a total nominal value of 21,659 thousand euros. (6,361,126) (919,412) (15,529) (165,193) – (1,808) 2,357 313 (7,293,397) (a) – 261 (166,740) 2,991,721 2,804,767 1,070,047 – 5,800 – 6,872,335 113 608 (753,091) – 14,548 – 401 – 738,142) 170 495 At December 31, 2005 Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result for the period Total Stockholders’ equity 6,377,257 681,856 22,591 446,562 27,710 335 (811,737) (27,710) 134,267 16,103 1,117,325 7,984,559 Allocat ion of the net result for the prior period Fair value adjustments recognised directly in equity 859,000 (3,571) 5,800 258,325 3,571 28,497 11,297 (1,117,325) – 28,497 2,343,375 2,343,375 7,097 6,377,257 1,540,856 22,591 446,562 24,139 6,135 (553,412) (24,139) (*) 162,764 27,400 2,343,375 10,373,528 (*) Treasury stock at December 31, 2006 consists of 3,773,458 ordinary shares for a total nominal value of 18,867 thousand euros. (a) In 2005, the item â€Å"Capital increase† is shown net of the repayment of the Mandatory Convertible Facility (3 billion euros), as it did not give rise to cash flows. Statement of total recognised income and expenses for 2006 and 2005 (in thousands of euros) Gains (losses) recognised directly in the fair value reserve (investments in other companies) Gains (losses) recognised directly in equityTransfer from cash flow hedge reserve Net result for the period Total of recognised income (expense) for the period 240 Fiat S. p. A. Financial Stateme nts at December 31, 2006 2006 2005 28,497 28,497 – 2,343,375 2,371,872 58,958 58,958 912 1,117,325 1,177,195 Fiat S. p. A. Financial Statements at December 31, 2006 241 Income Statement Balance Sheet pursuant to Consob Resolution No. 15519 of July 27, 2006 pursuant to Consob Resolution No. 15519 of July 27, 2006 (in thousands of euros) Dividends and other income from investments (Impairment losses) reversal of impairment losses of investments Gains (losses) on the disposal of investmentsOther operating income Personnel costs Other operating costs Income (expenses) from significant non-recurring transactions Financial income (expenses) Financial income from significant non-recurring transactions Result before taxes Income taxes Result from continuing operations Result from discontinued operations Net result 242 Fiat S. p. A. Financial Statements at December 31, 2006 Note 2006 (1) 362,419 2,099,350 425 79,238 (57,900) (141,006) – (24,847) – 2,317,679 (25,696) 2,34 3,375 – 2,343,375 (2) (3) (4) (5) (6) (7) (8) (9) (10) of which Related parties (Note 30) 33,200 (51,901) (17,765) 2005 7,714 430,789) (1,300) 72,854 (60,027) (121,360) 1,133,110 (61,685) 857,636 1,396,153 278,828 1,117,325 – 1,117,325 of which Related parties 24,256 (54,477) 106,259 (in thousands of euros) ASSETS Non-current assets Intangible assets Property, plant and equipment Investments Other financial assets Other non-current assets Deferred tax assets Total Non-current assets Current assets Inventories Trade receivables Current financial receivables Other current receivables Cash and cash equivalents Total Current assets Assets held for sale TOTAL ASSETS STOCKHOLDERS’ EQUITY AND LIABILITIES Stockholders’ equity Capital stockAdditional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock o ption reserve Net result Total Stockholders’ equity Non-current liabilities Provisions for employee benefits and other non-current provisions Non-current financial payables Other non-current liabilities Deferred tax liabilities Total Non-current liabilities Current liabilities Provisions for employee benefits and other current provisions Trade payables Current financial payables Other payablesTotal Current liabilities Liabilities held for sale TOTAL STOCKHOLDERS’ EQUITY AND LIABILITIES Note (11) (12) (13) (14) (15) (10) (27) (16) (17) (18) (19) At December 31, 2006 772 37,253 14,499,595 20,134 1,573 – 14,559,327 – 154,692 84,173 626,429 608 865,902 – 15,425,229 of which Related parties (Note 30) 10,029 2,408 84,173 146,908 At December 31, 2005 of which Related parties 676 39,658 5,117,532 5,335 4,502 – 5,167,703 5,262 – 215,652 3,075,894 799,920 495 4,091,961 – 9,259,664 7,687 3,075,894 106,007 (20) 6,377,257 1,540,856 22,591 4 46,562 24,139 6,135 (553,412) (24,139) 162,765 27,400 2,343,375 10,373,529 21) (22) (23) (10) (24) (25) (26) (27) 18,104 2,810,029 20,001 3,438 2,851,572 26,791 184,661 1,627,430 361,246 2,200,128 – 15,425,229 6,377,257 681,856 22,591 446,562 27,710 335 (811,737) (27,710) 134,267 16,103 1,117,325 7,984,559 2,810,029 – 17,801 1,405,554 319,078 29,171 5,262 16,861 – 51,294 30,991 385,182 557,383 250,255 1,223,811 – 9,259,664 5,262 2,622 4,975 434 215,379 Fiat S. p. A. Financial Statements at December 31, 2006 243 Notes to the Financial Statements Principal activities Fiat S. p. A. (the â€Å"Company†) is a corporation organised under the laws of the Republic of Italy and is the Parent Company f the Fiat Group, holding investments, either directly or indirectly through subholdings, in the capital of the parent companies of business Sectors in which the Fiat Group operates. The head office of the company is in Turin, Italy. The financial statements of Fiat S. p. A. are prepared in euros which is the currency of the economic environment in which the company operates. The Balance Sheet and Income Statement are presented in euros, while the Statement of Cash Flows, the Statement of Changes in Stockholders’ Equity, the Statement of Total Recognised Income and Expenses and the amounts stated n the Notes are presented in thousands of euros, unless otherwise stated. As the Parent Company, Fiat S. p. A. has additionally prepared the consolidated financial statements of the Fiat Group at December 31, 2006. Significant accounting policies Basis of preparation The 2006 financial statements are the separate financial statements of the Parent Company, Fiat S. p. A. , and have been prepared in accordance with the International Financial Reporting Standards (â€Å"IFRS†) issued by the International Accounting Standards Board (â€Å"IASB†) and adopted by the European Union.The designation â€Å"IFRS† also includes all the revised International Accounting Standards (â€Å"IAS†) and all the interpretations of the International Financial Reporting Interpretations Committee (â€Å"IFRIC†), previously known as the Standing Interpretations Committee (â€Å"SIC†). In compliance with European Regulation no. 1606 of July 19, 2002, starting from 2005 the Fiat Group has adopted the International Financial Reporting Standards (â€Å"IFRS†) issued by the International Accounting Standards Board (â€Å"IASB†) for the preparation of its consolidated financial statements. On the basis of national legislation implementing that Regulation, he annual statutory accounts of the Parent Company Fiat S. p. A. as of December 31, 2006 have been prepared for the first time also using those accounting standards. As a consequence the Parent Company Fiat S. p. A. is presenting its financial statements for 2006 and its comparative figures for the prior year in accordance with IFRS. The accou nting principles applied are the same as those used in the preparation of the Company’s Balance Sheets at January 1, 2005 and December 31, 2005 and its 2005 Income Statement in accordance with IFRS; these statements are provided in theAppendix attached to these Notes, to which reference should be made. The Appendix provides reconciliations of the Company’s equity and Income Statement reported under its previous accounting principles (Italian accounting principles) and IFRS, together with Notes, as required by IFRS 1 – Firsttime adoption of IFRS. Certain reclassifications have been made with respect to the figures published in the Appendix to the 2006 First-half Report. The comparative figures for the previous period were consequently reclassified. These reclassifications have no effect on the net result or stockholders’ equity.The financial statements have been prepared on a historical cost basis, modified as required for measuring certain financial instr uments. Format of the financial statements Fiat S. p. A. presents an Income Statement using a classification based on the nature of its revenues and expenses given the type of business it performs. The Fiat Group presents a Consolidated Income Statement using a classification based on function, as this is believed to be more representative of the format selected for managing the business sectors and for internal reporting purposes and is coherent with international practice in the automotive sector.Fiat S. p. A. has elected to present current and non-current assets and liabilities as separate classifications on the face of the Balance Sheet. A mixed format has been selected by the Fiat Group for the Consolidated Balance Sheet, as permitted by IAS 1, presenting only current and non-current assets separately. This decision has been taken in view of the fact that both companies carrying out industrial activities and those carrying out financial activities are consolidated in the 244 Fi at S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements Group’s financial statements.The investment portfolios of financial services companies are included in current assets in the Consolidated Balance Sheet, as the investments will be realised in their normal operating cycle. Financial services companies, though, obtain funds only partially from the market: the remaining are obtained through the Group’s treasury companies (included in industrial companies), which lend funds both to industrial Group companies and to financial services companies as the need arises. This financial service structure within the Group means that any attempt to separate current and non-current debt in the Consolidated BalanceSheet cannot be meaningful. This has no effect on the presentation of the liabilities of Fiat S. p. A. Assets are depreciated using the policies and rates described below. Lease arrangements in which the lessor maintains substanti ally all the risks and rewards incidental to the ownership of an asset are classified as operating leases. Lease payments under an operating lease are recognised as an expense on a straightline basis over the lease term. Depreciation Depreciation is charged on a straight-line basis over the estimated useful lives of assets as follows:The statement of cash flows has been prepared using the indirect method. In connection with the requirements of the Consob Resolution No. 15519 of July 27, 2006 as to the format of the financial statements, specific supplementary Income Statement and Balance Sheet formats have been added for related party transactions, so as not to compromise the overall reading of the statements. Annual depreciation rate Buildings Plant Furniture Fixtures Vehicles 3% 10% 12% 20% 25% Land is not depreciated. Intangible assets Impairment of assets Purchased and internally-generated intangible assets are ecognised as assets in accordance with IAS 38 – Intangible As sets, where it is probable that the use of the asset will generate future economic benefits and where the cost of the asset can be determined reliably. The company reviews at least annually the recoverability of the carrying amount of intangible assets, property, plant and equipment and investments in subsidiaries and associates, in order to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the carrying amount of an asset is written down to its recoverable amount.The recoverable amount of an asset is the higher of fair value less costs to sell and its value in use. Intangible assets with finite useful lives are measured at purchase or manufacturing cost, net of amortisation charged on a straight-line basis over their estimated useful lives and net of any impairment losses. Property, plant and equipment Cost Property, plant and equipment is measured at purchase or manufacturing cost, net of accumulated depreci ation and any impairment losses, and is not revalued. Subsequent expenditures are capitalised only if they increase the future economic benefits embodied in the asset to which hey relate. All other expenditures are expensed as incurred. In particular, in assessing whether investments in subsidiaries and associated companies have been impaired, their recoverable amount has been taken as their value in use, as the investments are not listed and a market value (fair value less costs to sell) cannot be reliably measured. The value in use of an investment is determined by estimating the present value of the estimated cash flows expected to arise from the results of the investment and from the estimated value of its ultimate disposal, in line with the requirements of paragraph 33 of IAS 28.Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements 245 When an impairment loss on assets subsequently reverses or decreases, the carrying amount of the as set or cash-generating unit is increased up to the revised estimate of its recoverable amount, but not in excess of the carrying amount that would have been recognised had no impairment loss been recorded. The reversal of an impairment loss is recognised immediately in income. Measurement Financial instruments Investments in subsidiaries and associates are tested for mpairment annually and if necessary more often. If there is any evidence that these investments have been impaired, the impairment loss is recognised directly in the Income Statement. If the company’s share of losses of the investee exceeds the carrying amount of the investment and if the company has an obligation to respond for these losses, the company’s interest is reduced to zero and a liability is recognised for its share of the additional losses. If the impairment loss subsequently no longer exists it is reversed and the reversal is recognised in the income statement up o the limit of the cost of the investment. Presentation Financial instruments held by the company are presented in the Balance Sheet as described in the following: I Non-current assets: Investments, Other financial assets, Other non-current assets. I Current assets: Trade receivables, Current financial receivables, Other current receivables, Cash and cash equivalents. I Non-current liabilities: Non-current financial payables, Other non-current liabilities. Current liabilities: Trade payables, Current financial payables (including payables for advances on the sale of receivables), Other payables. IThe item â€Å"Cash and cash equivalents† consists of cash and deposits with banks, units with liquidity funds and other highly traded securities that are readily convertible to cash and which are subject to an insignificant risk of changes in value. The liability relating to financial guarantee contracts is included in Non-current financial payables. The term financial guarantee contracts refers to contracts und er which the company guarantees to make specific payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument.The present value of the related receivable for any outstanding commissions is classified in Non-current financial assets. Investments in subsidiaries and associates are stated at cost adjusted for any impairment losses. The excess on acquisition of the purchase cost and the share acquired by the company of the investee company’s net assets measured at fair value is, accordingly, included in the carrying value of the investment. Investments in other companies, comprising non-current financial assets that are not held for trading (available-forsale financial assets), are initially measured at fair value.Any subsequent profits and losses resulting from changes in fair value, arising from quoted prices, are recognised directly in equity until the investment is sold or is impaired; the total profits and losses recognised in equity up to that date are recognised in the Income Statement for the period. Minor investments in other companies for which a market quotation is not available are measured at cost, adjusted for any impairment losses. Other financial assets for which the company has the intent o hold to maturity are recognised on the trade date and are measured at purchase price (being representative of fair value) on initial recognition in the Balance Sheet, inclusive of transaction costs other than in respect of assets held for trading. These assets are subsequently measured at amortised cost using the effective interest method. 246 Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements Other non-current assets, Trade receivables, Current financial receivables and Other current receivables, excluding assets eriving from derivative financial instruments and all financial assets for which quotations on an active market are not available and whose fair value cannot be reliably determined are measured at amortised cost using the effective interest method if they have a pre-determined maturity. If financial assets do not have a predetermined maturity they are measured at cost. Receivables with a due date beyond one year that are non-interest bearing or on which interest accrues at below market rate are discounted to present value using market rates.Valuations are performed on a regular basis with the purpose of verifying if there is objective evidence that a financial asset, taken on its own or within a group of assets, may have been impaired. If objective evidence exists, the impairment loss is recognised as a cost in the Income Statement for the period. Non-current financial payables, Other non-current liabilities, Trade payables, Current financial payables and Other payables are measured on initial recognition at fair value (normally represented by the cost of the transaction), in cluding any transaction costs.Financial liabilities are subsequently measured at amortised cost using the effective interest method, except for derivative financial instruments and liabilities for financial guarantee contracts. Financial liabilities hedged by derivative instruments are measured according to the hedge accounting criteria applicable to fair value hedges; gains and losses resulting from subsequent measurement at fair value, caused by fluctuations in interest rates, are recognised in the Income Statement and are set off by the effective portion of the gain or loss resulting from the respective valuation of the hedging instrument at fair value.Liabilities for financial guarantee contracts are measured at the higher of the estimate of the contingent liability (determined in accordance with IAS 37 – Provisions, Contingent Liabilities and Contingent Assets) and the amount initially recognised less any amount released to income over time. Derivative financial instrume nts Derivative financial instruments are used solely for hedging purposes, for the purpose of reducing foreign exchange rate risk, interest rate risk and the risk of fluctuations in market prices. In accordance with the conditions of IAS 39, derivative inancial instruments qualify for hedge accounting only when, at the inception of the hedge, there is formal designation and documentation of the hedging relationship, the hedge is expected to be highly effective, the effectiveness can be reliably measured and the hedge is actually highly effective throughout the financial reporting periods for which it was designated. All derivative financial instruments are measured at fair value, in accordance with IAS 39. When financial instruments have the characteristics to qualify for hedge accounting the following accounting treatment is dopted: I Fair value hedge – If a derivative financial instrument is designated as a hedge of the exposure to changes in fair value of a recognised asse t or liability that is attributable to a particular risk that could affect the Income Statement, the gain or loss resulting from remeasuring the hedging instrument at fair value is recognised in the Income Statement. The gain or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognised in the Income Statement. Cash flow hedge – If a derivative financial instrument is esignated as a hedge of the exposure to variability in the future cash flows of a recognised asset or liability or a highly probable forecast transaction that could affect the Income Statement, the effective portion of the gain or loss on the derivative financial instrument is recognised directly in equity. The cumulative gain or loss is reversed from equity and reclassified into the Income I Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements 247 Statement in the period in which the hedged transaction is recognised.Gains or losses associated with a hedge (or part of a hedge) which is no longer effective are immediately recognised in the Income Statement. If a hedging instrument or a hedging relationship is terminated, but the transaction being hedged has not yet occurred, the cumulative gains and losses recognised in equity until that time are recognised in the Income Statement at the time the transaction occurs. If a hedged transaction is no longer considered probable, the unrealised gains and losses that remain in equity are immediately recognised in the Income Statement. ividing the costs incurred by the total costs forecast for the whole construction). Any losses expected to be incurred on contracts are fully recognised in the Income Statement and as a reduction in contract work in progress when they become known. If hedge accounting cannot be used, the gains and losses resulting from changes in the measurement of the derivative financial instrument at fair value are immediatel y recognised in the Income Statement. Sales of receivables Inventory Inventory consists of work in progress on specific contracts and in particular relates to long-term construction contracts signed by Fiat S. . A. with Treno Alta Velocita – T. A. V. S. p. A. under which Fiat S. p. A. as general contractor performs the coordination, organisation and management of the work. Work in progress refers to activities carried out directly and is measured by applying the percentage of completion to the contract fee, thereby recognising the margins deriving from the work performed to date. The cost to cost method is used to determine the percentage of completion of a contract (by Any advances received from customers for services performed are presented as a reduction in inventory.If the amount of advances exceeds inventory, the excess is recognised as Advances in the item Other payables. Receivables sold in factoring operations are derecognised from assets if and only if the risks and rewards relating to their ownership have been substantially transferred to the buyer. Receivables sold with recourse and without recourse that do not satisfy this condition remain in the company’s Balance Sheet even if they have been sold from a legal point of view; in this case, an obligation of the same amount is recognised as a liability for the advances received.Assets held for sale Any amounts in this item will consist of non-current assets (or assets and liabilities included in disposal groups) whose carrying amount will be recovered principally through a sale transaction rather than through continuing use. Assets held for sale (or disposal groups) are measured at the lower of their carrying amount and fair value less disposal costs. Employee benefits The expense related to the reversal of discounting pension obligations for defined benefit plans are reported separately as part of the Group’s financial expense. Post-employment plansThe company provides pension pl ans and other postemployment plans to its employees. The pension plans for which the company has an obligation under Italian law are defined contribution plans, while the other post-employment plans, for which the company generally has an obligation under national collective bargaining agreements, are defined benefit plans. The payments made by the company for defined contribution plans are recognised in the Income Statement as a cost when incurred. Defined benefit plans are based on the employees’ working lives and on the salary or wage received by the employee over a predetermined period of service.The employees’ severance indemnity (trattamento di fine rapporto or TFR) is considered to be a defined benefit plan and is accounted for in the same way as other defined benefit plans. The company’s obligation to fund defined benefit plans and the annual cost recognised in the Income Statement are determined by independent actuaries using the projected unit credit m ethod. The portion of net actuarial gains and losses at the end of the previous reporting period that exceeds the greater of 10% of the present value of the defined benefit bligation and 10% of the fair value of the plan assets at that date is deferred and recognised over the remaining working lives of the employees (the â€Å"corridor method†); the portion of actuarial gains and losses that does not exceed this threshold is deferred. In the context of IFRS first-time adoption, the company elected to recognise all cumulative actuarial gains and losses at January 1, 2004 (date of first-time adoption of IFRS by the Fiat Group), although it has adopted the corridor method for those arising subsequently. 248 Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial StatementsThe liability for obligations arising under defined benefit plans and due on termination of the employment contract represents the present value of the obligation adjusted by act uarial gains and loses deferred as the result of applying the corridor approach and by past service costs for employee service in prior periods that will be recognised in future years. Other long-term benefits The accounting treatment of other long-term benefits is the same as that for post-employment benefit plans except for the fact that actuarial gains and losses and past service costs are fully ecognised in the Income Statement in the year in which they arise and the corridor method is not applied. Equity compensation plans The company provides additional benefits to certain members of top management and to certain employees through equity compensation plans. Under IFRS 2 – Share-based Payment, these plans are a component of employee remuneration whose cost is measured by the fair value of the stock options at the grant date recognised in the Income Statement on a straight-line basis from the grant date to the vesting date, with a counter entry to equity.Changes in fair v alue after the grant date do not have any effect on the initial measurement. The company has applied the transitional provisions of IFRS 2 and as a result the Standard is applicable to all stock option plans granted after November 7, 2002 but which had not yet vested by January 1, 2005, the effective date of the Standard. Detailed disclosures are also provided for plans granted before that date. Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements 249 Taxes Use of estimatesThe company recognises provisions when it has a legal or constructive obligation to third parties, when it is probable that the settlement of the obligation will require the outflow of resources and when a reliable estimate can be made for the amount of the obligation. The tax charge for the period is determined on the basis of prevailing laws and regulations. Income taxes are recognised in the Income Statement other than those relating to items credited or charged dir ectly to equity, in which case income taxes are also recognised directly in equity.Changes in estimates are recognised in the Income Statement for the period in which the change occurs. Deferred tax assets and liabilities are determined on the basis of all the temporary differences between the carrying amount of an asset or liability in the Balance Sheet and its corresponding tax basis. Deferred tax assets resulting from unused tax losses and temporary differences are recognised to the extent that it is probable that future taxable profit will be available against which they can be utilised.Current and deferred income taxes and liabilities are offset when there is a legally enforceable right to offset. Deferred tax assets and liabilities are measured by using the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. The preparation of financial statements and related disclosures that conform to IFRS requires management to make est imates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and iabilities at the date of the financial statements. Actual results could differ from those estimates. Estimates are used in accounting for depreciation and amortisation, impairment losses and reversals of impairment losses on investments, the margins earned on construction contracts, employee benefits, taxes and provisions. Estimates and assumptions are reviewed periodically and the effects of any changes are recognised in the period in which the estimate is revised if the revision ffects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Provisions Treasury stock The cost of purchase of treasury stock is accounted for as a reduction of equity. The effects of any subsequent transactions with those shares are similarly recognised directly in equity. Dividends received and receivable Di vidends received and receivable from investments are recognised in the Income Statement when the right to receive the payment of this income is established and only if declared from post-acquisition net income.If dividends are declared from pre-acquisition net income, those dividends are deducted from the cost of the investment. Revenue recognition Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and when the amount of revenue can be measured reliably. Revenue is presented net of any adjusting items. Revenue from services and revenue from construction contracts is recognised by reference to the stage of completion (the percentage of completion method).Revenues arising from royalties are recognised on an accrual basis in accordance with the terms of the relevant agreement. Financial income and expenses Financial income and expenses are recognised and measured in the Income Statement on an accrual basis. Fiat S. p. A. and almost a ll its Italian subsidiaries have elected to take part in the national tax consolidation programme pursuant to articles 117/129 of the Consolidated Income Tax Act (T. U. I. R. ); the election has been made for a three year period beginning in 2004.Fiat S. p. A. acts as the consolidating company in this programme and calculates a single taxable base for the group of companies taking part, thereby enabling benefits to be realised from offsetting taxable income and tax losses in a single tax return. Each company participating in the consolidation transfers its taxable income or tax loss to the consolidating company and Fiat S. p. A. recognises a receivable from that company for the amount of IRES corporate income tax paid over on its behalf. In the case of a company

Not All Epithets are Insults

Not All Epithets are Insults Not All Epithets are Insults Not All Epithets are Insults By Maeve Maddox Judging by the words common use in todays media, one might imagine epithet to be no more than a synonym for insult. Some epithets are insults, but the word has a wider application. For example, look at all these epithets Handel applied to the Baby Jesus in The Messiah: Wonderful, Counsellor, The Mighty God, The Everlasting Father, The Prince of Peace. Here are some Homeric epithets: many minded Achilles, swift-footed Odysseus, the ox-eyed lady (Hera) epithet 1. An adjective indicating some quality or attribute which the speaker or writer regards as characteristic of the person or thing described; 2. A significant appellation. OED 2nd edition. In 1993 this definition was added: An offensive or derogatory expression used of a person; an abusive term; a profanity. Leaving aside the literary uses of epithets, heres a look at some ways journalists use them. Some epithets, first used by one particular writer, become so attached to persons and things that it becomes rare to see one without the other: powerful Ways and Means committee embattled Governor Rod Blagojevich worlds largest retailer Wal-Mart Sometimes epithets may be used to predispose readers to a positive or negative frame of mind without seeming to editorialize: Motorist Rodney King Troubled pop star Brittany Spears NFL star Michael Vick semi-repentant zillionaire Mel Gibson greedy Wall Street bankers Some thoughts on epithets 1. Cliched epithets are not intrinsically bad. They can be useful shorthand devices for writers and readers in a hurry. 2. The epithet is a respectable rhetorical device. Writers with more time at their disposal might revise for cliched epithets and come up with fresher epithets of their own. 3. If one is writing about someone hurling epithets it might be helpful to specify what kind of epithets were hurled. Were they racial epithets? Did they attack the target in terms of gender, politics, occupation, or morality? Its conceivable that a speaker could be showered with complimentary epithets by his listeners. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:Comparative Forms of AdjectivesConnotations of 35 Words for Funny Peopleâ€Å"Least,† â€Å"Less,† â€Å"More,† and â€Å"Most†